Exports to the United States grew slower in the first half of the calendar year than the year-earlier period affected by sluggish economic recovery in the country’s single-largest destination for overseas sales, according to new data. A study, conducted by the United States Fashion Industry Association (USFIA), also revealed that the US-based fashion companies are more cautious about revving up sourcing from Bangladesh. The country fetched $2.84 billion from the US marking 1.33 per cent growth during January to June period of 2016 compared to the corresponding period of last year, the data from Office of Textiles and Apparel (OTEXA) affiliated with the US Department of Commerce have showed. Export earnings grew by 4.14 per cent during the first quarter of 2016, the data revealed. Out of the total receipts, the readymade garment (RMG) fetched $2.72 billion during the first half of the current calendar year. Export earnings from non-apparel items, including shrimp and plastic products, stood at $117.99 million during the January to June period registering a 2.87 per cent negative growth. On the other hand, Chinese apparel exports witnessed a negative growth of 5.20 per cent to $ 11.95 billion in the first half of this year. Meanwhile, the garment exports of Vietnam grew by 3.24 per cent to $5.10 billion and India’s slight 0.86 per cent to $2.02 billion during the same period. The study on “2016 Fashion Industry Benchmarking Study,” jointly conducted by USFIA and the University of Delaware, was launched in June last. It surveyed 30 executives from the US based fashion companies between March 2016 and April 2016. “Respondents seem to be more cautious about further increasing sourcing from Bangladesh over the next two years, with only 22.7 per cent expecting an increase, much lower than the 42.3 per cent expecting an increase in 2015,” the study said. Regarding Vietnam, the study said, “Although 61 per cent plan to somewhat increase sourcing Vietnam, only 4 per cent expect a strong increase, which is a substantial drop from 21.4 per cent in last year’s study.” The result reflects US fashion companies’ concerns about the uncertainty surrounding the ratification of the Trans-Pacific Partnership (TPP) and concerns about Vietnam’s ability to meet TPP’s strict “yarn-forward” rules of origin. Khondaker Golam Moazzem, additional research director of Centre for Policy Dialogue, said a declining trend in the demand might have slowed down the US’s imports not only from Bangladesh but also from other countries. Considering the overall scenario, Bangladesh’s apparel export growth is positive compared to that of China, which witnessed negative growth of more than five per cent. It shows that order from China might be shifting to other destinations, including Bangladesh and Vietnam, he said, expressing the hope that the ongoing safety measures, once completed, would help the country increase both buyers’ confidence and orders. Regarding prices of apparel products, he said the rate is a challenge for all exporting countries, not unique for Bangladesh. He recommended product diversification and enhancing productivity to get better price.
